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Net present value
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====Relies on input parameters such as knowledge of future cash flows==== The NPV is heavily dependent on knowledge of future cash flows, their timing, the length of a project, the initial investment required, and the discount rate. Hence, it can only be accurate if these input parameters are correct; although, sensitivity analyzes can be undertaken to examine how the NPV changes as the input variables are changed, thus reducing the uncertainty of the NPV.<ref>{{Cite web |title=Sensitivity Analysis Definition |url=https://www.investopedia.com/terms/s/sensitivityanalysis.asp |access-date=2023-04-21 |website=Investopedia |language=en}}</ref>
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